Electricity parastatal Eskom signed its first Emission Credits Purchase Agreement (ECPA) with European bank BNP Paribas in Johannesburg on Thursday.

The agreement was signed by Eskom's divisional executive for corporate services Steve Lennon and  BNP Paribas head of emissions Simon Dent.

"This agreement is the outcome of an open enquiry for bids requested to develop the clean development mechanism (CDM) for Eskom's compact fluorescent light programme," Eskom said in a statement.

The programme involved replacing incandescent light bulbs with CFL bulbs which consumed up to a sixth of the energy, creating significant energy savings.

"As well as accessing carbon finance for Eskom, this project will have environmental and social benefits, reducing power demand in South Africa and reducing the energy bills of everyday consumers," Eskom said.

Lennon welcomed the partnership between Eskom and BNP Paribas.

"This is the first time that Eskom has used the global carbon market to achieve its sustainability objectives, and the transaction will hopefully form the basis for many more similar agreements in future."

Active in the carbon market since 2005, BNP Paribas entered into a risk-taking contract with Eskom, to develop the CDM project at no cost to Eskom in exchange for an agreement to purchase carbon credits from Eskom.

"The carbon assets that will be created from this project will be certified emissions reductions and voluntary emissions reductions," Eskom said..